Mt. Gox moves trigger market tension

October 16, 2025

 

Reading time: 5 minutes

Mt. Gox wallet moves reignite $3.88B Bitcoin market fears

Key points:

  • Wallets tied to Mt. Gox showed movement for the first time in seven months, just ahead of the October 31 repayment deadline involving 34,000 BTC worth about $3.88 billion.

  • Analysts warn that limited OTC liquidity and slowing institutional demand could amplify volatility if repayments proceed without another extension.

News - After months of inactivity, Mt. Gox-linked wallets have stirred again, raising tension across the crypto market as the court-mandated Bitcoin repayment deadline nears.

Data from Arkham Intelligence shows that around 34,000 BTC remain in custody, valued at roughly $3.88 billion, with the Tokyo District Court’s October 31 deadline approaching rapidly.

The renewed on-chain activity comes as markets already face pressure. Over $540 million in crypto liquidations were recorded in the past 24 hours, with Bitcoin testing $110,000 support amid heightened volatility and whale profit-taking. According to CoinGlass, long positions accounted for more than $390 million of those liquidations.

Liquidity and sentiment risks mount - Market observers fear that if the Mt. Gox trustee cannot secure another delay, any direct BTC distribution could flood exchanges, straining liquidity.

Last year’s government sales were mostly absorbed through OTC channels such as Coinbase Prime, but analysts now caution that this deep liquidity has weakened.

At the same time, long-term holders and whales have sold more than 300,000 BTC since June, with profit-taking accelerating in October. Bitcoin treasuries have also slowed their buying pace to the lowest level since mid-June, reflecting reduced institutional appetite.

Investor fatigue deepens - Retail participation has also waned. Google search interest for “Bitcoin” is at bear-market levels, while the Crypto Fear & Greed Index recently fell to 24, signaling rising anxiety.

With fewer treasury inflows, reduced retail enthusiasm, and cautious institutional sentiment, analysts say the Mt. Gox deadline could become the next major volatility trigger for Bitcoin’s price.

Whether the trustee opts for another delay or proceeds with repayments, October 31 now stands as a key moment that could determine short-term market stability.

BlackRock expands stablecoin push with GENIUS Act-compliant fund

Key points:

  • BlackRock has revamped its Select Treasury Based Liquidity Fund (BSTBL) to comply with the U.S. GENIUS Act, making it usable as a reserve vehicle for stablecoin issuers.

  • The update comes as the stablecoin market reaches $314 billion, driven by institutional entrants and regulatory clarity.

News - BlackRock has expanded its presence in the digital asset market by restructuring its Select Treasury Based Liquidity Fund (BSTBL) to meet new U.S. stablecoin rules under the GENIUS Act.

The fund will now invest only in short-term Treasury securities and overnight repurchase agreements, offering a compliant structure for managing reserves that back U.S. dollar-pegged stablecoins.

The $13.5 trillion asset manager said the updated fund improves liquidity and aligns with reserve standards requiring 1:1 backing and regular audits. Trading hours have been extended to 5:00 p.m. ET to accommodate institutional clients managing cross-border flows.

Bridging traditional finance and stablecoins - The GENIUS Act, signed earlier this year, created the first federal framework for stablecoins, requiring issuers to maintain full reserve backing. BlackRock’s move positions it to manage those reserves for firms like Circle, the issuer of USDC, and potentially other regulated tokens.

Its cash management arm recently surpassed $1 trillion in assets, reinforcing its influence in liquidity services. Analysts note that as stablecoins evolve into core payment infrastructure, institutional players are increasingly shaping how they are issued and managed.

Competition heats up in the $314B market - According to Canaccord, the stablecoin market has hit an all-time high of $314 billion, with USDT and USDC leading issuance. New entrants such as Citi and Visa are exploring their own stablecoin projects, signaling rising competition in the sector.

By aligning its fund with new U.S. regulations, BlackRock is positioning itself at the center of this shift, not as a disruptor, but as an anchor for compliant liquidity in a maturing market.

Europe’s crypto rails mature: OKX–Standard Chartered expand custody, Lise wins tokenized stock license

Key points:

  • Standard Chartered and OKX extended their collateral mirroring program to the European Economic Area, letting institutions trade on OKX while holding assets in the bank’s custody under MiCA.

  • France’s Lise secured the EU’s first DLT Trading and Settlement System license to run a fully tokenized stock exchange that merges trading and settlement on one platform.

News - OKX and Standard Chartered deepened their partnership by rolling out collateral mirroring for institutional clients across the EEA. The model allows assets to remain in Standard Chartered’s custody while mirrored onto OKX for execution, aiming to cut counterparty risk and align with Europe’s MiCA framework.

The expansion builds on a pilot launched in the UAE in April and follows OKX’s European licensing push. Executives from both firms framed the move as a step toward bank-grade custody integrated with exchange access for regulated institutions.

At the same time, Paris-based Lise became the first company in Europe authorized to operate a fully tokenized equity exchange. The firm received a DLT TSS license from France’s ACPR under the EU DLT Pilot Regime, with oversight involving the Banque de France, ESMA, AMF, and the European Central Bank.

Lise will combine Multilateral Trading Facility and Central Securities Depository functions on a single blockchain, targeting near real-time settlement and initial SME and midcap IPOs in early 2026.

Bank-grade custody meets exchange access - Standard Chartered is the only G-SIB publicly working directly with a crypto exchange in this manner, according to the announcements. The EEA rollout offers institutional clients bank custody, mirrored balances on OKX, and a path to operate under clear European rules.

EU greenlights a fully tokenized stock venue - Lise’s license places Paris at the center of Europe’s tokenized market buildout. Backed by shareholders such as CACEIS, BNP Paribas, and Bpifrance, the venue targets firms under €500 million in market cap, with retail access planned for 2026 after investor knowledge checks.

Australia targets crypto ATMs as regulators widen crackdown on illicit cash flows

Key points:

  • Home Affairs Minister Tony Burke unveiled legislation granting AUSTRAC authority to restrict or prohibit “high-risk products,” including crypto ATMs.

  • Authorities say 85% of top-user ATM transactions are linked to scams or money-mule activity, with machines now exceeding 2,000 nationwide.

News - Australia’s government is preparing to empower its financial-crime watchdog, AUSTRAC, with new powers to curb misuse of cryptocurrency ATMs amid growing evidence of laundering and fraud.

Speaking at the National Press Club, Home Affairs Minister Tony Burke called crypto ATMs a “high-risk product” that enables fast, anonymous cash-to-crypto conversions and makes law-enforcement tracking more difficult.

The forthcoming legislation will authorize AUSTRAC to restrict or ban financial tools it classifies as high-risk. Officials said the rules respond to a surge in crypto ATM installations, rising from 23 machines six years ago to more than 2,000 today, positioning Australia as the world’s third-largest market by density.

AUSTRAC data show that 85 % of high-value transactions by top users were connected to scams or transfers to high-risk jurisdictions.

New powers and industry impact - AUSTRAC CEO Brendan Thomas said the measures will help the agency “reduce money-laundering risks” tied to cash-based digital-currency conversions. The new powers follow earlier actions such as a $5,000 transaction cap and the revocation of one operator’s license in June.

ATM operators have pushed back, noting that most machines already follow Know Your Customer rules and maintain video monitoring, blockchain analytics, and real-time scam alerts. The government clarified that AUSTRAC will have the discretion to restrict or ban devices rather than impose an outright prohibition.

Expanding oversight across borders - Similar crackdowns are appearing worldwide. New Zealand banned crypto ATMs in July, and Illinois introduced registration and anti-fraud mandates for kiosk operators in August.

Australian officials say these measures align with international efforts to stop criminal exploitation while still allowing compliant providers to operate under clear standards.

Interesting facts

  • In 2025, Space & Time launched its mainnet, offering a decentralized data platform that supports proof-of-SQL (i.e. cryptographically verifiable SQL queries across on- and off-chain data).

  • BTQ recently demonstrated Bitcoin Quantum Core 0.2, replacing Bitcoin’s ECDSA signatures with NIST-standard ML-DSA to offer quantum-resistant security, and plans a testnet rollout in Q4 2025.

  • SpacePay, a London startup, released a software update in 2025 that lets existing card machines accept crypto payments, enabling over 325 wallet types without new hardware.

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Top 3 coins of the day

Jupiter (JUP)

Key points:

  • JUP traded at $0.37, rising 2.66% in the last 24 hours after a series of red candles.

  • The Parabolic SAR remained above the candles, while the RSI hovered near 39, reflecting weak momentum despite a minor bounce in volume.

What you should know:

Jupiter attempted a modest recovery after recent losses, but the overall structure still reflected bearish undertones. The SAR’s position above the price signaled that sellers remained in control, even as the RSI hinted at a possible short-term floor forming. Trading activity improved slightly, suggesting cautious dip-buying interest. Externally, uncertainty around Jupiter DAO’s governance overhaul weighed on sentiment, as investors assessed the impact of reduced proposal activity and pending token burns. Combined with the broader risk-off mood in the crypto market, where capital continued flowing back to Bitcoin, JUP’s upside remained limited. For now, maintaining support near $0.35 is crucial before any sustained recovery attempt.

Key points:

  • TON traded at $2.27, climbing 2.66% in the last 24 hours after a steep weekly decline.

  • The 9-day SMA remained above the price, while the EWO stayed negative, signaling that bearish momentum persisted despite a mild recovery.

What you should know:

Toncoin showed early signs of stabilization after recent losses, though its broader structure still leaned bearish. The SMA positioned above the price confirmed that short-term sentiment stayed weak, while the EWO’s slightly shorter red bars suggested momentum was cooling. Trading activity was relatively subdued, indicating uncertainty among participants. Externally, investor caution lingered following TON’s v2025.10 network upgrade, which drew mixed reactions from the community. Meanwhile, high whale concentration continued to amplify volatility risks, leaving traders cautious about large-scale sell-offs. For now, TON’s next test lies around $2.30, where a decisive breakout could define short-term direction.

TRON (TRX)

Key points:

  • TRX traded at $0.32, marking a 1.22% intraday rise after recent losses.

  • The 20-day MA stayed below the 50-day MA, while the DMI indicated bears retained control despite a mild recovery.

What you should know:

TRON managed a modest uptick from its local lows, but the broader structure stayed tilted toward the bears. The active bearish MA crossover reflected unresolved downside pressure, while DMI readings confirmed that sellers still dominated momentum. Trading volumes remained subdued, hinting at cautious participation from traders. Beyond technicals, attention centered on Tron Inc.’s Nasdaq debut, which has amplified market visibility but also tied TRX sentiment closer to traditional equity volatility. Meanwhile, stablecoin settlement activity across the TRON network continued to anchor its utility narrative. For now, the $0.31 level acts as a key near-term support, while a sustained move above $0.33 could open the door for a short-term trend reversal.

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